Question
The stocks of Tesla and Nio have the following expected returns: State of Economy Probability of State of Economy Nio's Return if State Occurs Tesla's
The stocks of Tesla and Nio have the following expected returns:
| State of Economy | Probability of State of Economy | Nio's Return if State Occurs | Tesla's Return if State Occurs |
| Recession | 50% | -12% | -15% |
| Normal | 15% | 8% | 6% |
| Boom | 35% | 13% | 16% |
What is the standard deviation of the portfolio where 30% is Nio and 70% is Tesla? [10 points]
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Regulation Of Securities Markets And Transactions
Authors: Patrick S. Collins
1st Edition
0470601965, 978-0470601969
